Just Dial rings in a tepid September quarter; analysts keep a wary eye

On the bourses, Just Dial shares plunged up to 4.51 per cent to hit an intraday low of ₹820.85 per share on Q2 results.

Just Dial Q2 results review: Just Dial (JD) reported a muted set of September quarter of financial year 2026 (Q2FY26) numbers, with revenue at ₹303 crore, up 1.8 per cent Q-o-Q and 6.4 per cent Y-o-Y, broadly in line with estimates of ₹302 crore. Net profit, menawhile, dropped 22.5 per cent annually to ₹119.4 crore, from ₹154.1 crore a year ago. 

On the bourses, Just Dial shares plunged up to 4.51 per cent to hit an intraday low of ₹820.85 per share. At 9:20 AM, Just Dial share price was trading near day’s low, down 4.38 per cent at ₹822 per share. In comparison, BSE Sensex was trading 0.26 per cent higher at 82,543.03 levels.

 

The growth, in Q2, was driven by an increase in paid campaigns (+1.1 per cent Q-o-Q, +4.3 per cent Y-o-Y) and higher revenue per campaign (+0.7 per cent Q-o-Q, +2.0 per cent Y-o-Y). Listings rose 3.1 per cent Q-o-Q and 10.8 per cent Y-o-Y, while net additions surged 61.9 per cent Q-o-Q and 16.4 per cent Y-o-Y. 

 

Unique visitors were largely flat at 197.7 million, rising 2.3 per cent Q-o-Q but declining 0.2 per cent Y-o-Y, with mobile traffic up 2.1 per cent Y-o-Y, while desktop and voice traffic fell. App downloads grew 1.6 per cent Q-o-Q and 8.4 per cent Y-o-Y to 41.4 million.

 

Collections, a key revenue driver, moderated further, rising 7.3 per cent Q-o-Q but declining 1.9 per cent Y-o-Y, reflecting soft traction in unearned revenue. Deferred revenue stood at ₹530 crore, down 1.6 per cent Q-o-Q but up 2 per cent Y-o-Y.   ALSO READ | Signature Global sees Q2 sales slowdown, yet Nuvama says 'Buy'; here's why 

JM Financial noted that collections in Q2 were down 1.9 per cent Y-o-Y compared with +0.6 per cent Y-o-Y growth in Q1FY26, despite a sharp increase in net paid campaigns. The brokerage attributed the weak traction to a preference for shorter-duration monthly plans over longer-duration plans during the quarter.

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at ₹87.1 crore, up 6.1 per cent Y-o-Y but 2.4 per cent below JM Financial estimates due to higher advertising and promotional (A&P) spends. 

 

Nuvama Institutional Equities also highlighted a slight margin contraction, with Ebitda margin falling to 28.7 per cent, down 29 bps Q-o-Q and 9 bps Y-o-Y, driven by elevated marketing expenditure. JD’s workforce reduced slightly by 257 to 12,811 employees, with the sales force shrinking by 99 to 10,077.

 

Analysts pointed to near-term margin pressure due to continued marketing investments aimed at boosting platform engagement among users and merchants. 

 

JM Financial also noted that the lack of clarity on the company’s much-awaited cash distribution policy could weigh on stock performance despite attractive valuations.  ALSO READ | Motilal Oswal sees 58% upside in LG Electronics India; check 5 key reasons 

On the valuation front, Nuvama maintained a ‘Buy’ rating with a revised target price of ₹1,200 (from ₹1,280), due to attractive discounted cash flow (DCF)-based valuations. 

 

JM Financial, too, revised its target price downward to ₹1,100 (from ₹1,200) after cutting the target price-to-earnings multiple to 14x from 15x, reflecting muted operating profit growth in JD’s core business. The brokerage, however, retained its ‘Buy’ rating.

 

While JD’s top-line growth continues to be supported by volumes and realisations, the moderation in collections, higher marketing spends, and deferred capital allocation signal a cautious near-term outlook. Analysts, however, retain a positive stance on the stock, highlighting valuation support as a key factor for investors.